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K-TRON REPORTS LOWER SECOND QUARTER RESULTS

 CHERRY HILL, N.J., July 27 /PRNewswire/ -- The recession in Europe and termination of shipments of security systems to R.J. Reynolds Tobacco USA caused second quarter profits to decrease to $0.4 million, or 12 cents per share, from $1.1 million, or 37 cents per share a year earlier, K-Tron International, Inc. (NASDAQ: KTII) announced today.
 Marcel O. Rohr, president and chief executive officer, said, "Sales and earnings of our traditional feeder lines increased in most of our markets during the quarter, and we experienced some improvements generally in North American operations. But these increases were not enough to offset the sharp decreases in the depressed German and French markets and the termination of our security systems business."
 Revenues in the second quarter were $27.8 million, compared to $31.6 million for the same period in 1992, a decrease of 12 percent. For the first half, 1993 revenues were $55.7 million, up $5.1 million over the first half of 1992. Earnings for the six months were down, however, to $1.2 million, or 39 cents per share, vs. $1.8 million, or 60 cents per share for the same period last year. First half 1993 results include approximately 11 cents per share recorded in connection with the effect of a change in accounting principles for income taxes.
 Rohr said, "The company's cash flow remains excellent and new bank agreements which replace short-term debt with long-term debt have strengthened our balance sheet. At the same time," he added, "we are combining facilities and operations in Germany, France, Switzerland and Singapore. We expect these and other current cost initiatives to reduce our annual fixed-costs by 15 percent. Because we will not realize many of these savings until late this year, they will have little impact on 1993 results."
 "We expect a weak third quarter followed by some improvement in the fourth quarter. However, we will not be able to sustain our prior year performance without a pick-up in the overseas economies and an accelerated U.S. recovery. Our continuing technological and marketing momentum -- as evidenced by introduction of 12 new products over the past year -- will assure the company's long term growth and success.
 Separately, Rohr announced that the company's board of directors had approved a new policy under which 16 key executives would be expected to own certain amounts of K-Tron common stock by Dec. 31, 1993, and Dec. 31, 1995. These amounts range from 20,000 shares for Rohr by Dec. 31, 1995, to 2,500 shares at the lowest level.
 K-Tron International, Inc., through its subsidiaries, is a major producer of gravimetric and volumetric feeders, blenders and related process control and material handling equipment, with facilities and customers throughout the world.
 K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
 Financial Summary
 (Unaudited; Dollars in thousands, except per-share data)
 Three months Change Six months Change
 Pct. Pct.
 7/3/93 7/4/92(A) 7/3/93 7/4/92(A)
 Revenues $27,811 $31,607 (12) $55,688 $50,641 (10)
 Income before income
 taxes and cumulative
 effect of change in
 accounting principles
 for income taxes 702 1,796 61 1,422 2,772 (49)
 Income taxes 332 660 --- 570 950 ---
 Income before
 cumulative effect of
 change in accounting
 principles for
 income taxes 370 1,136 (67) 852 1,822 (53)
 Cumulative effect of
 change in accounting
 principles for
 income taxes --- --- --- 350 --- ---
 Net income 370 1,136 (67) 1,202 1,822 (34)
 Earnings per share
 before cumulative
 effect of change in
 accounting principles
 for income taxes $.12 $.37 (68) $.29 $.60 (53)
 Earnings per share $.12 $.37 (68) $.39 $.60 (35)
 Average number of
 common and common
 equivalent shares
 outstanding 3,078,000 3,035,000 --- 3,078,000 3,031,000 ---
 (A) Includes two months of Colortronic, GmbH, acquired April 30, 1992.
 /delval/
 -0- 7/27/93
 /CONTACT: Ronald G. Larson, senior vp and CFO of K-Tron, 609-661-6240/
 (KTII)


CO: K-Tron International, Inc. ST: New Jersey IN: SU: ERN

MJ-32 -- PH032 -- 6486 07/27/93 17:56 EDT
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Publication:PR Newswire
Date:Jul 27, 1993
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